It’s time for your end-of-the-year insurance review

It’s one of those things that is easy to overlook – taking the time to review your insurance coverage.

Why is this so important? Well, let’s start with the knowledge that you work hard and want to protect your income. That’s why it’s so important to review your family’s insurance needs annually to make sure you have the right amount and type of insurance to cover unforeseen circumstances that can derail a financial plan.

Life insurance is always a good place to start
If your family is growing, you might want to increase the amount of your life insurance to protect your loved ones. Or, as your net worth grows and your children reach adulthood, you may want to re-evaluate your life insurance to determine you have the right type of coverage.

Long term care insurance
You might also benefit from looking into long term care insurance, which may offer a variety of features and options. There might even be a combination life insurance/long-term care plan that is right for you.

Changes to your home impact your homeowner’s coverage
When was the last time you took a look at your homeowner’s coverage? When you first bought time. This is something else you should do annually.

If you insured your home for $200,000 when you first bought it but now it would cost you at least cost $300,000 to rebuild, you’re facing a coverage gap. If for any reason you had to rebuild your home because of a fire or other damage you would be facing a $100,000 gap in coverage. Is that something that you could really afford?

Any renovation or upgrade is another reason you will want an insurance review. It can help ensure that your home and belongings are fully protected.

Check your auto insurance
If you haven’t shopped for coverage in the past three years, it’s worth a phone call to review your auto coverage to see if you can save on you premium. Even if you find that the coverage you have is the least expensive, there may be other ways to reduce your premiums.

Don’t forget to review your beneficiaries
Your annual review should also include a simple check of your insurance beneficiaries to make sure this information is up to date.